Regulatory Notice 08-50

Procedures for Submitting Written Attestation of Bona Fide Market Making Relating to Fail-to-Deliver Positions

Executive Summary

FINRA is advising firms of the process by which market makers, under SEC Rule 204T, can submit their written attestation to extend the close-out requirements for fail-to-deliver positions established solely for the purpose of meeting its bona fide market making obligations. 

 

Market makers must complete the form in Attachment A to qualify for the extension. 

 

Questions regarding this Notice may be directed to: 

 

  • Short Sale Section, Market Regulation, at (240) 386-5126;  
  • FINRA Operations, at (866) 776-0800; or 
  • Office of General Counsel, at (202) 728-8071.

 

Please note that under the requirements of the SEC's interim final temporary rule, a market maker is no longer required to attest in writing that the fail to deliver position at issue was established solely for the purpose of meeting its bona fide market making obligations. However, as with any exception, a broker-dealer would have to evidence eligibility for, and compliance with, the requirements of this exception. See Securities Exchange Act Release No. 58773 (October 14, 2008) at fn 84.